The government has lifted interest rates of many small saving schemes inclusive of Public Provident Fund (PPF) and National Savings Certificate (NSC) by 0.4% for October-December quarter.
As per a mandate issued by the Finance Ministry dated September 19, the interested rates of the many different small saving schemes have been revised between 30 basis points and 40 basis points (One percentage point is equivalent to 100 basis points), reported Economic Times.
What are the revisions in Interest Rates?
- 30 basis points hike in interest rates of one or two or three year time deposits.
- Sukanya Samriddhi Scheme, PPF, Five-year time deposit will witness an increase by 40 basis points in their interest rates.
- PPF and NSC will fetch 8%, Sukanya Samriddhi Scheme will get 8.5% and Senior Citizens Savings will earn 8% following the new interest rates.
- The rates have been the same since the past two quarters.
The interest rate hikes include schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and post office time deposits.
Interest rates on small savings scheme for the quarter ending December 31, 2018
| Instrument | Rate of Interest w.r.t 01.07.2018 to 30.09.2018 | Rate of Interest w.r.t 01.10.2018 to 31.12.2018 | Compounding Frequency* |
| Savings Deposit | 4.0 | 4.0 | Annually |
| 1 year Time Deposit | 6.6 | 6.9 | Quarterly |
| 2 year Time Deposit | 6.7 | 7.0 | Quarterly |
| 3 year Time Deposit | 6.9 | 7.2 | Quarterly |
| 5 year Time Deposit | 7.4 | 7.8 | Quarterly |
| 5-year Recurring Deposit | 6.9 | 7.3 | Quarterly |
| 5 year Senior Citizen Savings Scheme | 8.3 | 8.7 | Quarterly and Paid |
| 5-year Monthly income Account | 7.3 | 7.7 | Monthly and Paid |
| 5 year National Savings Certificate | 7.6 | 8.0 | Annually |
| Public Provident Fund Scheme | 7.6 | 8.0 | Annually |
| Kisan Vikas Patra | 7.3 (will mature in 118 months) | 7.7(will mature in 112 months) | Annually |
| Sukanya Samriddhi Account Scheme | 8.1 | 8.5 | Annually |
Source: Finance Ministry